Taming inflation thru flexible taxation

The idea of setting different tariffs for agricultural commodities based on their production calendar sounds good, for its basic objective is to protect the interests of domestic producers, consumers and the government. But its execution might prove daunting because of a host of factors. The Bangladesh Trade and Tariff Commission (BTTC), according to a report published in this paper, has floated a proposal designed to provide relief to the inflation-hit consumers and protect the interests of the farm goods producers without affecting the government's revenue earnings.
It is not hard to understand why authorities are trying to find ways to tame the runaway food inflation. This is, after all, election year and increasingly the general populace is beginning to believe that the State is complicit in the act of fleecing consumers of their precious earnings at the retail markets along with the perceived 'market syndicates'. The good deeds on the infrastructure side are being marred by something fundamental - the unimaginable rise in cost of food!
Half-hearted interventions initiated from time to time have had no impact on prices and hence a different way of taming the prices of essentials is being explored. Although there is contention amongst economists about whether these measures would make much of a dent as it is their opinion that authorities need to put a lot more emphasis on market monitoring to break up the so-called syndicates that are thought to be responsible for the price volatility in the first place.
As pointed out by the Chairman of the Research and Policy Integration for Rapid Development (RAPID), Dr. Mohammad Abdur Razzaq, "market management is important to rein in the prices of essential commodities. The government will have to build a data bank of essential commodity supply to take proper decision." The idea of a seasonal tariff regime revolves around the imposition of varying tariffs on farm produce during harvesting season to protect the interests of farmers and consumers. As per plan, these tariffs would be fixed at the beginning of a year on the basis of harvesting calendar of agricultural products.
To what end such measures would be effective is in doubt. Given the propensity of importers to give false declarations to bring in products in a manner to dodge customs and tax authorities, it may prove to be a tall order to implement this new tax regime. Again, it is understood from experience that any tariff cut to tame prices of commodities is a long-drawn process under the current bureaucratic system. Hence, there is suspicion whether this raft of measures would actually bring about any benefit to either farmers or consumers.
Although the ministry of commerce is confident that this new measure will work, it all depends on what sort of policy guideline is in place to make good use of this plan. Doubts have risen about whether the government has access to the right data concerning the production of different agricultural commodities in the country. Authorities are now hamstrung by poor quality data which make it next to impossible to plan effectively. It would be much easier if authorities decided to go after unscrupulous players in the supply chain of essential foods with anti-racketeering measures, including incarceration, to have a positive impact on prices.